1. Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer?

a. Raw materials.

b. Work-in-process.

c. Finished goods.

d. Supplies.

2. Where should raw materials be classified on the statement of financial position?

a. Prepaid expenses.

b. Inventory.

c. Equipment.

d. Not on the statement of financial position.

3. Which of the following accounts is not reported in inventory?

a. Raw materials.

b. Equipment.

c. Finished goods.

d. Supplies.

4. In a period of rising prices, the inventory method which tends to give the highest reported inventory is

a. FIFO.

b. moving average.

c. specific identification.

d. weighted-average.

5. Which inventory costing method most closely approximates current cost for ending inventory?

a. Average

b. FIFO

c. LIFO

d. Specific identification